According to the formation of the daily chart, bitcoin is at a critical point in terms of price. As the battle between bulls and bears rages on, it is clear that sellers have the upper hand for now despite the recent price stability.
btc Price at a Crucial Price Level: Will Bulls Take Control?
As btc bulls attempt to reverse losses recorded last week, one analyst, citing the technical candlestick formation and the reaction at the 200-day moving average, believes that how prices react for now will have consequences in the days ahead.
In a post on x, the analyst x.com/CalebFranzen/status/1810512539035537748″ target=”_blank” rel=”nofollow”>noted the currency fell and closed below the 200-day moving average after last week's losses. This formation was crucial.
Over the months, this dynamic line had acted as critical support, anchoring buyers during the last bullish cycle from October to mid-March.
The rally was sustained and although the level was not tested again until late June, when prices were generally weak, last week's breakout was decisive.
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While bearish, the analyst acknowledged that last week's breakout was clear. However, as things stand, there is hope for the bears because there has been no bearish bar to confirm it.
For this to happen, prices need to fall below $56,500 and break below $53,500, which marks last week’s low. When this happens, it will be official that the bears are back and sellers are likely to continue pushing lower in a downtrend continuation formation.
For bitcoin to turn around, it is imperative that prices reject last week’s losses and move higher, closing above the 200-day moving average. This recovery will be the bullish signal that can mark the beginning of a bullish leg, resuming the uptrend of the first quarter of 2024.
For now, traders are keeping an eye on the psychological line of $60,000 and, ideally, on a close above $66,000. In that case, bitcoin could find the momentum to retest $72,000, an important sell-off level.
Watch out for bitcoin ETF spot inflows
Even amid the optimism, traders are keeping a close watch. x.com/QuintenFrancois/status/1810562524967837910″ target=”_blank” rel=”nofollow”>looking bitcoin exchange-traded fund (ETF) inflows have spiked, especially in light of the German government’s sustained drop in positions. The sell-off has been putting further pressure on btc, capping gains and deflating bullish momentum.
If sellers are persistent and mirror recent trends, there could be more bloodshed and spot bitcoin ETF issuers could see outflows.
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In recent weeks, especially in June, as prices fell, BlackRock, Fidelity, Grayscale and other major issuers recorded outflows, accelerating the downtrend.
Featured image by DALLE, chart by TradingView
